Jersey Discusses Tax In UK

by Amanda Banks, Tax-News.com, London

07 October 2010

Jersey’s finance industry was invited to discuss the role that Jersey plays in attracting international business to the UK, at the Conservative Party Conference, held last week.

An audience of over 100, including a number of members of the UK and European parliaments, were addressed by Geoff Cook, chief executive of Jersey Finance, who spoke at the fringe event, hosted by the Adam Smith Institute, entitled ‘Tax reform: Blueprint for a Revolution’.

He told the audience that Jersey acts as an important conduit in channeling investment into the UK, stating:

“There is still often a fundamental lack of understanding of the benefits the Crown Dependencies bring to the UK, in terms of facilitating the flow of capital and encouraging overseas investment. In recent years, for example, there has been considerable growth in the number of businesses choosing a Jersey company as a holding company, through which the UK gains business from emerging markets such as China, India and the Middle East.”

Discussing the importance of tax competition, he added that Jersey competes for business on exactly the same basis as 70 other countries which offer some kind of benign tax neutral regime - through a mix of business expertise, political and social stability, modern infrastructure, good communications and sound regulation:

“There has been much debate in the UK recently about how the country can build a more competitive economy, with the government recently announcing its ambition to have the “most competitive corporate tax system in the G20. Tax competition is good for all economies. It leaves more capital in the productive side of the economy, which generates greater economic activity and wealth, which in turn is available for reinvestment.”

Also speaking at the event were Dr Madsen Pirie, President of the Adam Smith Institute; Douglas Carswell MP who spoke about reforming local taxation; Allister Heath, Editor of City AM who spoke on flat taxes; and Richard Teather, Senior Lecturer in Tax Law at the University of Bournemouth who spoke about the principles of tax competition.

Commenting on the significance of the event, Cook said:

“By working with the UK and the City of London, Jersey can play a role in stimulating investment and growth, but for that to work most effectively there needs to be a proper understanding of how tax competition can be beneficial and of the real value of international finance centres like Jersey. For that reason, having the opportunity to speak to an audience of UK politicians and party activists was very welcome indeed.”

Recommended